Retail M&A and IPOs Poised for a 2026 Comeback

Dealmaking Activity Set to Rebound

Dealmakers forecast a significant rise in mergers, acquisitions, and initial public offerings within the retail and consumer goods sectors for 2026. This follows a period of suppressed activity attributed to US import tariffs that sidelined many deals last year.

Market Overview

At the recent ICR Conference in Orlando, industry leaders and investors expressed a renewed sense of optimism. The sentiment marks a stark contrast to the previous year when tariff announcements stalled market activity. The latter half of last year already saw a resurgence, featuring major deals like Kimberly-Clark’s acquisition of Kenvue.

Drivers of Renewed Activity

According to Goldman Sachs, the number of high-quality companies prepared to go public is the highest since 2021, signaling strong exit opportunities for private investors. This environment is expected to fuel more private equity activity. Experts also point to activist investors and a focus on corporate carveouts as potential catalysts for more transactions.

Summary

The outlook for consumer and retail dealmaking is positive, driven by a strong pipeline of IPO-ready companies and renewed investor confidence. Key trends to watch include larger-scale deals and strategic corporate breakups.

FAQ

Q: Why is retail M&A expected to increase?
A: Activity is expected to rise due to renewed investor confidence, a strong pipeline of quality companies ready for IPOs, and a desire for growth after a slowdown caused by previous tariffs.

Q: Which companies are mentioned as potential IPO candidates?
A: Companies noted as primed for IPOs include several restaurant chains, Once Upon a Farm, Caliber Holdings, and Bob’s Discount Furniture.

Source: Investing.com